I talked to a student recently who graduated dental school a few years ago with $300,000 of student debt (a figure some of you would be happy to have!). For a variety of reasons, she hadn’t worked in the last three years and spent some time overseas before that. Her outstanding debt is now closer to $450,000. In just a few years her outstanding debt increased 50 percent. What happened?
There’s a pretty good chance that if you have student loans (and even if you don’t), you have received a flyer or some type of marketing piece describing how much interest you would save if you “refinanced” your student loans. There has been tremendous growth in the private student loan market and with that growth has come lots of marketing that has left recent grads confused and unsure about their debt. This post will discuss various aspects of refinancing your loans with a private lender and some of the potential negative consequences.